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3 years ago

What is a balance sheet? How does it support business?

1 answer:

6 0

A balance sheet is a summary of all of your business assets (what the business owns) and liabilities (what the business owes). At any particular moment, it shows you how much money you would have left over if you sold all your assets and paid off all your debts (i.e. it also shows 'owner's equity').

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Direct materials $ 37 per unit Fixed manufacturing overhead costs $ 225,000 Sales price $ 195 per unit Variable manufacturing ov

mina [271]

Answer:

A.Gross Margin $385,550

B. Contribution margin $566,500

Explanation:

a. Preparation of a gross margin income statement

Gross margin income statement

Sales 1,072,500

(5500*$ 195 per unit)

Less Variable expenses:

Direct Material 198,000

(5500*36)

Direct Labour 143,000

(5500*26)

Variable manufacturing overhead 121,000

(5500*22)

Fixed Manufacturing overhead 224,950

(5500*40.90)

(225,000/5500=40.90)

Gross Margin $385,550

Therefore Gross Margin will be $385,550

b. Preparation of a contribution margin income statement.

Contribution margin income statement

Sales 1,072,500

(5500*$ 195 per unit)

Less cost of goods sold:

Direct Material 198,000

(5500*36)

Direct Labour 143,000

(5500*26)

Variable manufacturing overhead 121,000

(5500*22)

Variable Marketing and administrative cost 44,000

(5500*8)

Contribution margin $566,500

Therefore Contribution margin will be $566,500

6 0

3 years ago

You have just purchased a new car! You made a down payment of $5,000 and financed the balance. According to the purchase agreeme

erik [133]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The down payment of $5,000 and financed the balance. According to the purchase agreement, you must pay $600/month for four years, beginning one month from today. The credit agreement is based on an annual interest rate of 12%.

First, we need to calculate the final value of the monthly payment.

FV= {A*[(1+i)^n-1]}/i

A= annual deposit= 600

i= 0.12/12= 0.01

n= 12*4= 48

FV= {600*[(1.01^48)-1]}/0.01= 36,733.56

Now, we calculate the present value:

PV= FV/ (1+i)^n= 36,733.56/ (1.01^48)= 22,784

Total cost= 22,784 + 5,000= $27,784

8 0

3 years ago

On October 31, 2015, the bank statement shows that your company has $12,956.73 in its checking account. You are aware of three o

seraphim [82]

Answer:

C. $11,498.73.

Explanation:

Solving this question, we will have to make use of this formula:

The Adjusted Bank Balance = Unadjusted Balance as per Bank Statement as at Oct 31, 2015 - Checks Outstanding

= $12,956.73 - $2,112.19 = $10,844.54

Now,

Before the adjustment on the 31st of October, 2015,

The Cash account Balance = Adjusted Bank Balance + insufficient funds checks

= $10,844.54 - $654.19 = $11,498.73

Hence third option in the question is the correct answer.

4 0

3 years ago

Read 2 more answers

I. What is meant by derive demand? a. The demand is derived in beginning economic classes.

iogann1982 [59]

Answer:

D is the answer ( The demand for a resources is derived from the demand for what it can produce.)

Explanation:

4 0

3 years ago

What is protectionism

zavuch27 [327]

Answer:the theory or practice of shielding a country's domestic industries from foreign competition by taxing imports

Explanation:

7 0

3 years ago

Read 2 more answers